v3.26.1
WORKFORCE REBALANCING CHARGES
3 Months Ended
Jun. 30, 2026
WORKFORCE REBALANCING CHARGES  
WORKFORCE REBALANCING CHARGES

NOTE 14. WORKFORCE REBALANCING CHARGES

During the three months ended June 30, 2026, the Company initiated actions to reduce our overall cost structure and increase our operating efficiency, which we expect to continue through the end of the fiscal year 2027 (the “Fiscal 2027 Actions”). We expect these actions will result in workforce rebalancing charges of approximately $200 million.

During the year ended March 31, 2026, the Company initiated actions to reduce our overall cost structure and increase our operating efficiency which continued through the end of the fiscal year 2026 (the “Fiscal 2026 Program”). The total charges incurred related to the Fiscal 2026 Program were $60 million.

The following table presents the segment breakout of charges incurred during the three months ended June 30, 2026 and 2025.

Three Months Ended June 30,

Costs Incurred to Date

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

Fiscal 2027 Actions

  ​ ​ ​

Fiscal 2026 Program

United States

$

21

$

6

$

21

$

20

Japan

9

4

9

5

Principal Markets

44

11

44

15

Strategic Markets

78

5

78

20

Total charges

$

152

$

25

$

152

$

60

The following table presents the classification of workforce rebalancing activities in the Consolidated Income Statement during the three months ended June 30, 2026 and 2025.

Three Months Ended June 30,

Costs Incurred to Date

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

Fiscal 2027 Actions

  ​ ​ ​

Fiscal 2026 Program

Workforce rebalancing charges

$

152

$

25

$

152

$

60

The following table presents the components of and changes in our workforce rebalancing liabilities during the three months ended June 30, 2026.

Workforce

Workforce

Fiscal 2027

Fiscal 2026

(Dollars in millions)

  ​ ​ ​

Actions

  ​ ​ ​

Program*

Balance at March 31, 2026

$

$

4

Charges

152

Cash payments

(18)

(1)

Non-cash adjustments

(1)

Balance at June 30, 2026

$

133

$

3

*The Fiscal 2026 Program balance excludes workforce rebalancing liabilities inherited from our former Parent of $10 million as of March 31, 2026. Current-year movement excludes cash payments of $1 million and ending balance of $9 million related to actions initiated by and inherited from our former Parent. Workforce rebalancing liabilities are recorded within other liabilities in the Consolidated Balance Sheet.